Staying cash-flow positive: taught by grandparents who lived through the depression, Ayanna Goring knows how to hold on to money.

AYANNA GORING IS SERIOUS ABOUT managing her money. She has her grandparents, who told her stories of frugal and resourceful living during the Depression, to thank for that. Goring says the stories her grandparents shared with her gave her financial grounding. "They instilled in me the importance of saving, paying yourself first, supporting your community, and being cognizant of how you spend," says the 31-year-old human resource generalist in Alameda, California. Because Goring took her grandparents' teachings to heart, it was easy for her to commit to Declaration of Financial Empowerment Principle No. 6: to be proactive and knowledgeable about in vesting, money management, and consumer issues.

Goring grew up in the San Francisco Bay area with a large extended family. She began showing her business savvy in the seventh grade. When kids were trying to keep up with the latest fashions, Goring was thinking of ways she could pay for college. The budding entrepreneur decided to package surplus food from her family's catering business and sell it as boxed lunches to students who didn't want cafeteria food. She earned up to $100 a week. She also worked part-time jobs at the catering business and her father's mortuary to earn money. Everything she earned was put into a savings account, and by the time she left for college in 1991, she had saved more than $5,000.

An avid saver, Goring saves about 16% of her $65,000 salary. So far, she has about $30,000 saved for retirement. She had more, but from 2002 to 2004, she used some of it to establish a customized gift basket business and a human resources consulting service. She returned to full-time employment at the end of 2004, her two business ventures having brought in about $4,000, which she saved.

Goring's goal over the next year is to save 20% of her annual salary. She opened an individual brokerage account to help reach that goal. Goring doesn't exactly call herself a sophisticated investor, but she does have an investment strategy that works for her. "I tend to buy the stocks of companies whose products or services I use, like Southwest Airlines. I fly Southwest, and I like what I've read and heard about the company culture," she explains. She also believes in buying the stocks of companies that may have temporary challenges, but a positive long-term outlook. For example, she bought Ford Motor Co. stock after the share price dropped because its Explorer SUV was having tire problems.

Goring has a consumer strategy as well. She uses an Excel spreadsheet to track her spending and updates it weekly, making adjustments as needed. She has also developed a keen eye for deals, successfully lowering her telephone, cable, Internet, and insurance costs. "My rule is, unless I really feel like I can't live without it, I don't buy anything that's not on sale. And I mean anything, from clothing to travel to whatever," says Goring, who shops in grocery outlets, travels off season, and prefers hotels with special programs that entitle her to perks, such as a flee breakfast.

A stickler for detail, Goring actually reads the fine print on all her bills and credit cards statements to make sure she isn't being overcharged. The way she sees it, the more she can cut costs in areas that are less important to her, the more money she'll have for things she truly loves, such as traveling, entertainment, and music.

Overall, Goring's sensible approach to managing money has helped keep her debt load relatively light. While she owes $100,000 in student loans from earning her undergraduate degree from Clark Atlanta University and an M.B.A. from Georgia State University, the only other debt she has is a $5,000 credit card bill, which she expects to pay off early next year. Goring hasn't bought a home yet, but pays rent to live in her great-great-grandmother's home, which has been handed down through her family and is now owned by her mother.

So as Goring prepares for her future, she literally lives in a part of her family's wealth-building legacy, watching her money and looking out for quality deals that can lengthen that heritage in a meaningful way.

PRINCIPLE 6

To be proactive and knowledgeable about investing, money. management, and consumer issues

Goring loves to share her frugal shopping and budgeting techniques with family and friends. Here are three of them:

* Think quality, not quantity. Goring is a big proponent of buying classic clothing items, that will remain stylish for years and can be dressed up or down. "Forget about trendy, whether it's clothes or cars," she says. Goring recommends buying a few things of high quality that will last, rather than items that will go out of style or that you may tire of quickly,

* Research your purchases. "The best consumer is a smart consumer," says Goring, who routinely researches the products and services she wants to buy on the Internet and by talking to family, friends, and coworkers. "I'm not just talking about big things like computers and cars, but research and get opinions on just about everything," she says.

* Invest in what you know and support. "Support companies that share some of your values," advises Goring. She suggests learning about a company's culture and practices. "I believe that companies that treat their employees and customers right are companies that are going to be successful. That core philosophy will manifest itself in their bottom line, and that company will likely be a good investment."

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1] To use homeownership to build wealth

2] To save and invest 10% to 15% of my after-tax income

3] To commit to a program of retirement planning and investing

4] To engage in sound budget, credit, and tax management practices

5] To measure my personal wealth by net worth, not income

6] To be proactive and knowledgeable about investing, money management, and consumer issues

7] To provide access to programs that will educate my children about business and finance

8] To support the creation and growth of profitable, competitive black-owned enterprises

9] To use a portion of my wealth to strengthen my community

10] To ensure that my wealth is passed on to future generations